Three types of costs when quality considered
• This task must be in a memo format (MSWord provides a memo template that can be used). The memo needs to be between 1-3 pages and should be addressed to a hypothetical supervisor.
• Successful papers must clearly identify the three types of costs that should be utilized when quality considerations are being made. There are three specific costs that need to be addressed in this section.
• For further reference, the costs of quality are discussed in Chapter 9 (p. 418-422) of the Operations Management text.
Section B: •
This portion of the task should clearly explain each of the three types of costs that were identified in Section A. (Prevention, Appraisal, and Failure (Internal & External) Cost)
• The explanation of these three types of costs must also incorporate applicable examples.
• This section requires your evaluation of the three types of costs considering the potential trade-offs within manufacturing a product and/or producing a service.
• There are not any formulas needed to complete the trade-off analysis portion of this task. Section C will be based on your own individual analysis.
• In evaluating the costs, define potential trade-offs. For example, what would be a trade-off for the cost of increased maintenance on machinery? A potential trade-off would be an improved product. You would then analyze whether this trade off would be worth the cost.
• Bateman, T., and Snell, S. (2010). Management: Leading & collaborating in the competitive world (9th ed.). New York: McGraw-Hill. ISBN-13: 978-0-07-813724-2
• Kreitner, R., and Kinicki, A. (2009). Organizational behavior (9th ed.). New York: McGraw-Hill. ISBN-13: 978-0-07-353045-1
• Stevenson, W. (2008). Operations management (10th ed.). New York: McGraw-Hill ISBN-13: 978-0-07-337784-1